Weekly Report from Washington, D.C.

During the week of August 6, the IRS released long-awaited guidance on new Code Sec. 199A, commonly known as the “pass-through deduction” or the “qualified business income deduction.”. TIGTA noted that the IRS had made progress in addressing certain aspects of its internal control weaknesses that affect its financial reporting.

Treasury

Exceptive Relief. The Financial Crimes Enforcement Network (FinCEN) extended the limited exceptive relief period from beneficial ownership requirements especially for certain covered financial institutions, (TAXDAY, 2018/08/09, T.1).

TIGTA. The IRS had made progress in addressing certain aspects of its internal control weaknesses that affect its financial reporting, according to a report by the Treasury Inspector General for Tax Administration (TIGTA), (Ref. No. 2018-10-044; TAXDAY, 2018/08/07, T.1).

IRS

I.R.B. The IRS released I.R.B. 2018-33, dated August 13, 2018, (TAXDAY, 2018/08/10, I.1).

Tax Tip. Additional time was provided to challenge levies, (TAXDAY, 2018/08/10, I.3).

Notice. Taxpayer Advocacy Panels (TAPs) scheduled open meetings, (TAXDAY, 2018/08/09, I.1).

Delegation Order. The IRS Commissioner had issued a delegation order discussing the authority to prescribe the extent to which any ruling relating to the internal revenue laws shall be applied without retroactive effect, (TAXDAY, 2018/08/09, I.2).

Pass-Through Deduction. The IRS released long-awaited guidance on new Code Sec. 199A, commonly known as the “pass-through deduction” or the “qualified business income deduction.” Taxpayers can rely on these proposed regulations and a proposed revenue procedure until they are issued as final, (NPRM REG-107892-18; Notice 2018-64; IR-2018-162; TDNR SM-0456; TAXDAY, 2018/08/09, I.3).

Tax Tip. The IRS provided tips to extension filers, (TAXDAY, 2018/08/09, I.4).

Per Diem. The U.S. State Department released a listing of maximum travel per diem allowances for travel in foreign areas, (TAXDAY, 2018/08/08, I.1).

Preventative Measures. The IRS urged tax professionals to adopt certain preventative measures to safeguard client data to avoid becoming targets of identity theft, (IR-2018-161; TAXDAY, 2018/08/08, I.2).

Clarification. The IRS issued a memo that sets forth some general guidelines for the cost sharing regulations application and determination of reasonably anticipated benefit (RAB) shares with respect to separate cost pools under a single cost sharing arrangement (CSA), ( TAXDAY, 2018/08/08, I.3).

Extension of Deadlines. The IRS extended filing and payment deadlines for California taxpayers affected by wildfires, (TAXDAY, 2018/08/08, I.4).

PMTA. PMTA discussed overpayments on deferred foreign income, (TAXDAY, 2018/08/08, I.4).

Tax Tip. Taxpayers were provided tips on accessing information online, (TAXDAY, 2018/08/08, I.6).

Telephone Directory. The IRS had issued an updated version of the Chief Counsel telephone directory, dated August 5, 2018, (TAXDAY, 2018/08/07, I.1).

Regulation. The IRS had issued final regulations regarding the designation and authority of the partnership representative under the centralized partnership audit regime, (T.D. 9839; TAXDAY, 2018/08/07, I.2).

Comment Request. The IRS requested comments on various forms, (TAXDAY, 2018/08/07, I.3).

Tax Tip. Truckers were provided tips on filing highway use tax returns due August 31, (TAXDAY, 2018/08/07, I.4).

Notice. The IRS modified the safe harbor for homeowners participating in the Hardest Hit Fund, (Notice 2018-63; TAXDAY, 2018/08/06, I.1).

Notice. The IRS and the Treasury had issued guidance announcing that they intend to issue proposed regulations clarifying recent law changes to the limits on contributions to ABLE accounts, (Notice 2018-62; TAXDAY, 2018/08/06, I.2).

Depreciation. Proposed regulations addressed the new 100-percent depreciation deduction that allows businesses to write off most depreciable business assets in the year they are placed in service, (NPRM REG-104397-18; IR-2018-159; TDNR SM-0455; TAXDAY, 2018/08/06, I.3).

Accounting Method Change. The IRS announced it would provide automatic consent to a small business taxpayer’s application to change to the cash method of accounting, (IR-2018-160; Rev. Proc. 2018-40; TAXDAY, 2018/08/06, I.4).

Disaster Relief. A July 9, 2018 notice (TAXDAY, 2018/07/11, I.2) granting relief to victims of severe storms and flooding that began on June 19, 2018, in parts of Texas was updated by the IRS on August 1, 2018, to include Jim Wells county, ( TAXDAY, 2018/08/06, I.5).

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CCHTaxGroup

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